CP 575 Form Explained
If you have applied for an EIN for your new business, be on the lookout for a CP 575 letter in the mail from the IRS confirming your approval and providing all the necessary information to move forward with launching your business.
TABLE OF CONTENTS
- An IRS CP-575 form is a notice from the IRS that informs the taxpayer of their approval for a unique employer identification number (EIN).
- Employer identification numbers can be used by businesses to file taxes, open business bank accounts, complete payroll information, apply for business loans, and apply for business credit cards.
- Employers can apply for an EIN by filling out IRS Form SS-4, Application for Employer Identification Number, and waiting approximately 6 weeks until they receive the EIN application approval in the mail in a CP 575 letter.
- If business owners lose or misplace their EIN tax information, the IRS will not issue a second CP 575 letter. Instead, they must request a copy of IRS Form 147c, EIN Verification Letter, to confirm the EIN.
What Is A CP 575 Form?
CP-575 is a notice from the IRS informing the taxpayer that they have been successfully approved for a unique employer identification number (EIN). Within a CP 575 letter, taxpayers can access the EIN for their new company as well as learn which tax forms must be filed for the business. This information will be important when it comes time to file a tax return for organizations, as the preparer will know exactly which documents are necessary to fill out and send to the IRS.
What Is An Employer Identification Number?
An Employer Identification Number (EIN) or a Federal Taxpayer Identification Number is used by the IRS to identify a business entity. EINs work similarly to how a Social Security number is used to identify an individual for tax purposes. Once an EIN has been established, it can be used to file taxes for the organization, open a business bank account, process payroll operations for employees, or apply for a business loan or credit card.
EINs are beneficial for people starting a business because they can conduct business activity under the business name while protecting their personal assets. Additionally, filers can use their EIN when filling out tax forms instead of providing personal details, such as their SSN, personal filing status, or date of birth.
How To Get A Copy Of IRS Form CP 575
In order to get a copy of an IRS CP 575 form, taxpayers must first fill out IRS Form SS-4, Application for Employer Identification Number. Once the information has been filled out, a signature has been provided, the application has been submitted, and the EIN has been approved, the IRS will mail the CP 575 EIN confirmation letter to the mailing address listed on line 4 of the paperwork. It typically takes 6 weeks from the time the form is submitted for the taxpayer to receive their CP 575 letter with information about their new EIN, as the IRS will only issue this form through the mail, and not through fax or online.
Why Should Business Owners Keep Their IRS Form CP 575 On File When They Already Know Their EIN?
In most situations, providing the EIN within certain documentation is all that is required to register a business. However, businesses must occasionally provide proof that the EIN is owned by the correct person. In these circumstances, a CP 575 letter is used. For this reason, this tax document should be kept in the business’s records.
IRS Form CP 575 Replacement
If you lose or misplace your IRS Form CP-575, the IRS will not replace this document. Instead, you must file IRS Form 147c, EIN Verification Letter, to confirm the EIN. To request a copy of IRS Form 147c, you must use the telephone number 1-800-829-4933 and call an IRS representative. This phone number is the specialty tax line for businesses that is toll free and operates from 7 AM until 7 PM at the local time of the caller. Once you have filed IRS Form 147c, the IRS will send the EIN verification through the mail or by fax, but if the individual needs their EIN to be confirmed immediately, it will be fastest to elect the fax option.
If you have any questions about your IRS CP 575 document or need help from a third-party paid-preparer with filing your taxes this year, contact us at Ideal Tax to get started and figure out your tax balance due or if you will be owed a tax refund.